Executives Should

question 20

Multiple Choice

Executives should

• A)spend an additional dollar on an activity if consumers value it by more than a dollar.
• B)do more of something if marginal revenue is positive.
• C)pend an additional dollar on an activity if consumers value it by less than a dollar.
• D)do more of something if average revenue is greater than zero.

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Definitions:

Delegatee

A person or entity to whom duties, powers, or responsibilities have been transferred by a delegator.

Anti-Assignment Clause

A provision in a contract that prohibits the transfer of rights or delegation of duties to another party without prior consent.

Donee Beneficiary

A third party who benefits from a contract in which one party promises to give a gift or perform a service for another.

Incidental Beneficiary

An individual or entity that gains unintentional benefit from a contract to which they are not a party.